Trade Cases
Trump to place 25% tariffs on Canada and Mexico, 10% on China starting Tuesday
Written by Michael Cowden
February 1, 2025
The Trump administration will implement 25% tariffs on Canada and Mexico and 10% tariffs on China, according to a White House fact sheet and executive orders circulated on Saturday.
The administration said that it would tariff “energy resources” from Canada at a lower rate – 10%.
The tariffs will go into effect at 12:01 ET on Tuesday, according to an executive order. The White House documents made no mention of exemptions.
Trump said on Thursday that tariffs were imminent.
The fact sheet noted that President Trump said in November – a reference to a post on Truth Social – that the tariffs would apply to “ALL products coming into the United States, and its ridiculous Open Borders.”
Canada and Mexico have vowed to retaliate.
Note that Canada runs a trade surplus with the US, including in steel. But, broadly speaking, the surplus is because the US depends on heavy crude from Canada’s oil sands. Midwest refineries in particular rely on it.
The Trump administration said the tariffs were necessary because of a “national emergency” stemming from “illegal aliens and drugs.” It singled out fentanyl and the chemicals used to make it.
“Tariffs are a powerful, proven source of leverage for protecting the national interest,” the White House said in a statement.
“President Trump is using the tools at hand and taking decisive action that puts Americans’ safety and our national security first,” it added.
The documents mentioned steel only in passing. The fact sheet pointed out that Trump used “national security” to justify tariffs on steel and aluminum. That was a reference to Section 232, which Trump implemented in March 2018.
The measure introduced a 25% tariff on imported steel and a 10% tariff on imported aluminum. Trump came back to the same round numbers in these much broader tariffs.
Michael Cowden
Read more from Michael CowdenLatest in Trade Cases
Leibowitz on trade: How much will the Trump tariffs hurt the US? How much will they help?
The benefits from higher tariffs are speculative and unproven. The disruptions caused by tariffs and other trade restrictions are better documented and cannot be rationally denied. For the tariffs to be good policy, the Trump argument must therefore be sure that the benefits to the US exceed the cost of these disruptions. Otherwise, we have madness masquerading as policy.
Canacero claims ‘surge’ of US steel exports, backs retaliation against potential tariffs
Mexican steel trade association Canacero said US steel exports represent “a threat to the Mexican steel industry.” Canacero also backed retaliatory measures if President Trump enacts 25% tariffs on Mexico by Feb. 1.
Updated timeline for coated steel trade case
Less-than-fair-value investigations The US Commerce Department has agreed to postpone preliminary decisions in the corrosion-resistant steel (CORE) antidumping duty (AD) investigations. Commerce said in a Federal Register filing that it will now issue initial AD margin determinations by April 3. The deadline had previously been Feb. 12. The extension comes after domestic petitioners requested earlier […]
Trump threatens 25% tariffs on Canada and Mexico as soon as Feb. 1
President Donald Trump said on Monday evening that he was considering placing tariffs of 25% on imports from Canada and Mexico. The president said the tariffs could go into effect as soon as Feb. 1. President Trump threatened the tariffs as he signed a raft of executive orders in front of reporters in the Oval […]